Saving for a House Deposit
LiamM_2
Posts: 22 Forumite
Evening all,
I'm 20 years old, on a fairly good salary (for my age) and attempting to save to buy a house. I've had some quotes on 100% mortgages etc.. (but thats for another board). Regardless of whether I go for 100% or not I'm going to have some fairly high-costs to move in anyway!
Right now, I live with my parents (rent-free - as long as I save the rent they would charge me!) and my outgoings are fairly low (Car loan £160/month / Insurance (£110/month) / Mobile Phone £50/month) and some smallies. Totalling around, say £450/month.
I've never been good at saving. I am very good at spending, however, and impulse buying.
So, I'm trying to think of a good way to save money, and possibly of ways to increase my funds (either through high interest savings or investments etc...).
Does anyone know of any decent methods of motivating myself to save or to stop me spending what I'm putting into my savings account?!?
Is it a good idea, instead of putting the money away, to invest it on shares or something instead? (Hopefully increasing the amount and also removing it from being so easy to spend)?
Any general advice appreciated but I'm hoping to save around £1k/month. Is it worth it?
Cheers,
Liam
I'm 20 years old, on a fairly good salary (for my age) and attempting to save to buy a house. I've had some quotes on 100% mortgages etc.. (but thats for another board). Regardless of whether I go for 100% or not I'm going to have some fairly high-costs to move in anyway!
Right now, I live with my parents (rent-free - as long as I save the rent they would charge me!) and my outgoings are fairly low (Car loan £160/month / Insurance (£110/month) / Mobile Phone £50/month) and some smallies. Totalling around, say £450/month.
I've never been good at saving. I am very good at spending, however, and impulse buying.
So, I'm trying to think of a good way to save money, and possibly of ways to increase my funds (either through high interest savings or investments etc...).
Does anyone know of any decent methods of motivating myself to save or to stop me spending what I'm putting into my savings account?!?
Is it a good idea, instead of putting the money away, to invest it on shares or something instead? (Hopefully increasing the amount and also removing it from being so easy to spend)?
Any general advice appreciated but I'm hoping to save around £1k/month. Is it worth it?
Cheers,
Liam
0
Comments
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£50 a month on your mobile phone :eek: thats a bit high, is it not? is your phone diamond encrusted or something
have you checked that you're on the best possible tariff?
on a serious note if you are a poor saver then i suggest the best thing you can do is choose a savings account with a good rate of return but where there are penalties if you make a withdrawal, hopefully that will encourage you to leave your nest egg well alone to let it grow.
i would also say make the most of the cheap living at your parents (im doing the same at my in-laws with the exact same aim). if you can cut down your day to day living costs, you will have more money towards your nest egg, and you can either move out sooner, or stay longer and eventually put down a larger deposit.
good luck!know thyselfNid wy'n gofyn bywyd moethus...0 -
Hmm, I may possibly be able to move to a cheaper tarrif - but I do use my phone a lot (I don't use the landline at all).
The problem with the penalty for withdrawel is that, if the right house comes up, I'm going to go for it and will therefore need to withdraw.
However, I wouldn't mind taking a look. Can you suggest any such savings accounts?0 -
depends on your situation.
im in no great rush - being realistic, it will be at least another 2 years, possibly even 3, before we are in a realistic position to buy comfortably (have no problem with putting up the deposit, but would not get the best mortgage rate due to our current combined income). we aim to be with the outlaws for most of this period, and all parties are quite happy with the arrangement.
consequently, our saving plans are slightly longer term. OH and i both fill our ISAs as soon as possible to eek every last penny of interest we can get. after that, we choose the best paying savings account that suits our needs. sometimes i tart around to get a good introductory offer, sometimes i settle in one place that pays a reasonable amount.
some accounts need notice to withdraw money (as little as 3 working days if it is with an online bank, to 60 or even over 100 days with other banks). some accounts withhold that month's interest if you make a withdrawal, or only allow so many withdrawals per year. other types of accounts (high interets regular savers in particular) seem to withhold all interest accrued that year if you make a withdrawal.
unfortunately, there isnt any hard and fast rules, and the Ts & Cs vary from one account to the next, and from bank to bank. my advice would be to sit down and have a gander on moneysupermarket or similar to get a feel for whats out there. once you have a feel for how the different types of accounts operate, you can see more clearly what will be best for youknow thyselfNid wy'n gofyn bywyd moethus...0 -
Get your parents to set up an account, then set up a DD into that account every month, to get the money out, you'd have to go through them!
They're obviously keen to see you saving, so let them help/force you.0
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